A significant number of financial transactions occur without the use or exchange of physical currency between transacting parties. Many of these transactions occur using credit cards, smart cards, debit cards and the like (hereinafter collectively referred to as “cards”). Each card is typically associated with one or more accounts which indicate the amount of funds which are available. For example, a credit card is typically associated with an express or variable credit limit (with the variable credit limit often determined by a complex algorithm based on a person's financial resources, recent purchasing habits, and the value of the purchase being transacted). A smart card is associated with an amount of funds stored electronically by the card itself. A debit card may be associated with a person's chequing, savings, money market or other financial account held by a financial institution (e.g., a bank, a brokerage or financial services company, etc.)
Cards have become extremely popular and are increasing in their popularity. Visa International, based on May, 2001 statistics, reports that there is nearly US$3.4 trillion dollars per year in expenditures, worldwide, using credit and debit cards and this level expenditure is increasing at a rate in excess of 20% per year. Visa International, and its member institutions, have issued in excess of one billion Visa credit cards.
However, the ubiquity of use of these cards and the ease which many people acquire one or usually multiple cards, sometimes results in financial difficulties for some people.
Additionally, many people have difficulties in budgeting and ensuring that any income is allocated appropriately. For example, many people create a budget for future spending but have difficulties in ensuring that the actual expenditures follow planned expenditures. Additionally, some government or non-governmental agencies provide assistance through various programs (e.g., food stamps, child assistance programs, food programs, assistance for utilities, etc.) and wish to ensure that their clientele are using the assistance as designed. Other persons (e.g., family members, universities, governments, etc.) provide assistance to students and wish to ensure that the assistance is also used appropriately (i.e., for food, texts, tuition rather than being used for travel, entertainment, etc.).
Attempts have been made to assist card users in managing their finances. For example, some card issuing companies issue an end of year statement breaking down a year's worth of expenditure into various expense categories (e.g., travel expenses, etc.). Other attempts have been made to allow cards to be issued to a family member of the card holder (typically a child) with a reduced monthly spending limit. However, these attempts at assistance, while having some benefit to the card holders, fall short of the assistance desired or required.
Finally, there are many members of society that are unable to gain access to a card due to a person's current or previous financial situation. This may cause significant hardship in gaining access to certain services (e.g., rental of property such as cars, video tapes, etc.) or in embarrassment in using some of the other forms of social assistance (e.g., welfare cheques, food stamps, etc.)
Accordingly, improvements to the shortcomings described above relating to authorization for, and restriction of, financial transactions is desired.